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Merger

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Merger

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  • October 9, 2017 at 11:24 am #410011
    tarek
    Participant
    • Topics: 45
    • Replies: 57
    • ☆☆

    Dear Mike,

    If company A purchased company B as merger So Company B isnt exists any more. The cost of acquission is more than net fair value of company B. This difference should be recorded as goodwill? If not how i can record in company A books?

    Thanks

    October 9, 2017 at 3:26 pm #410043
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23203
    • ☆☆☆☆☆

    Why not goodwill?

    And why close down company B?

    And merger accounting no longer exists – there is always an acquirer and an acquiree so any amount paid in excess of fair value is goodwill

    And, finally, mergers are not part of your syllabus, even if they did exist!

    OK?

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